FAQs

Factoring is a financial transaction and a type of debtor finance in which a business sells its existing or future occurring accounts receivable to a factoring company at a discount. A business will sometimes factor its receivable assets to meet its immediate cash needs.

1. Off balance sheet financing
   • A/R are removed from your balance sheet and transforms them into cash
   • Improves financial position in terms of ratios
2. Easy handling of your international trade
   • By communicating with our correspondents who handle the assessments and collection of your outstanding debt
3. Increase your company’s sales turnover
4. Offer you longer payment terms
5. Access to fast cash transfer services

• International factoring (IF) provides on-the-ground expertise in the buyers’ markets, which is particularly important in the event of a major problem
• Business with importers is concluded in their own language, in their time zone, and in accordance with their normal customs and practices
• Factors Chain International (FCI) is the global representative body for factoring and financing of open account domestic and international trade receivables. It provides a network of locally successful factors using state of the art technology
• IF can provide country-specific information about individual sectors
• IF service can provide valuable assistance in resolving disputes with importers
• FCI is actively extending its worldwide network
• Competition among local international factors can benefit customers who will have access to top-class services

• Advance payment is provided by a factoring company to a seller based on invoices confirmed by a qualified buyer
• The buyer concludes a factoring agreement with the factor, in which the latter agrees to purchase and pre-finance current receivables of a predefined sellers
• When the goods have been delivered and an invoice has been issued by the seller, the invoice data is checked by the buyer, who then sends these details, along with a confirmation of payment, to the factor